Word has finally emerged regarding the fate of Prey 2 and the ambitious shooter is apparently still on the run. It won't be out this year, as previously planned, but it hasn't been cancelled. Bethesda have this to say on the matter:

Development of Prey 2 has not been cancelled but the game will not be released in 2012 as planned. The delay is due to the fact that game development has not progressed satisfactorily this past year, and the game does not currently meet our quality standards.

The full statement is below. I haven't actually played the game but since seeing it in action and speaking to Chris Rhinehart about Human Head's plans, I've been looking forward to hunting bounties in space.